Securities Law Commons^™

Corporations-Blue Sky Laws-Liability Of Officers And Directors Of Corporation For Violation, L. W. Larson, Jr.

Michigan Law Review

Plaintiff sued a corporation and its president to recover money paid for purchase of stock sold in violation of the ''blue sky" laws of Michigan. The president, through correspondence, had induced plaintiff to complete the purchase. Plaintiff had judgment below against both defendants. The president alone appealed, contending among other things that he was not an "agent" within the meaning of the statute. Held, affirmed. The word "agent" in the Michigan statute1 includes officers and directors of the corporation whether they are authorized "agents" or are holding themselves out as "agents" of the corporation. Cleland v. Smart, 321 …

Corporations - Statutes Declaring Watered Stock Void - Effect Upon The Stockholder's Liability To Creditors

Michigan Law Review

Prior to the present era of "blue sky" laws providing for the careful scrutiny by the state of the issuance of stock, the evil of watered stock was sought to be curbed by constitutional and statutory provisions of a prohibitory and often penal nature. These statutes and constitutional provisions very generally take one of two forms.

The Colorado and the Arizona provisions are typical. In practical effect the two types of provisions are indistinguishable. The phrase "bona fide subscribers" in the Arizona form is construed to mean one who actually turns something of value over to the corporation in lieu …

State "Blue-Sky" Laws And The Federal Securities Acts, Russell A. Smith

Michigan Law Review

With the current revival of business has come increased activity in the securities markets. Corporations are taking advantage of low money rates to refund outstanding issues and, to some extent, to obtain new money for corporate purposes. If the upturn in business proves to be substantial, rather than merely a temporary, government-induced short-time swing, the issuance of securities for the purpose of financing capital improvements will doubtless accelerate. Questions arising under the various laws, federal and state, for the regulation of the sale of securities will become increasingly important. Persons interested in the issuance and disposal of securities desire, of …

The Ohio "Blue Sky" Cases, Clarence D. Laylin

Michigan Law Review

The ancient notion that private fraud lies beyond the domain of public law did not long survive the statements of it that have been quoted.' Our legislation, expressing always the changing moral standards of the people, has directed the sanctions of the criminal law, step by step, ever against new forms of overreaching and imposition. Numerous illustrations might be cited to show the growing repugnance of the public mind toward frauds and cheats, and the tendency to recognize them as offenses invoking the restraint of public action as well as the redress of private injuries.